Open the filing on EDGARKingstone Reports Third Quarter 2026 Results
Most Profitable Quarter in Company History
Diluted Net Income Per Share of $1.19 | Annualized Return on Equity of 53%
Net Premiums Earned Growth of 30% | Direct Premiums Written Growth of 14.5%
GAAP Net Combined Ratio of 65.6%
Company Updates 2026 Outlook; Raises and Narrows Diluted EPS Guidance to $2.70 to $2.90
Management to Host Conference Call Tomorrow at 8:30 a.m. Eastern Time
Kingston, NY - November 5, 2026 - Kingstone Companies, Inc. (Nasdaq: KINS) (“Kingstone” or the “Company”), a regional property and casualty insurance holding company, today announced its financial results for the third quarter ended September 30, 2026. The Company has also provided an investor presentation that can be accessed through the News & Events/Presentations section of the Company website at www.kingstonecompanies.com.
| Quarters Ended | Nine Months Ended |
|---|
| September 30, | September 30, |
|---|
| Key Financial and Operational Highlights |
| ($ in thousands, except per share data) | 2026 | 2025 | Change | 2026 | 2025 | Change |
| Net premiums earned | $62,412 | $47,925 | 30.2% | $178,748 | $137,663 | 29.8% |
| Direct premiums written | $86,795 | $75,810 | 14.5% | $228,892 | $195,047 | 17.4% |
| Net combined ratio | 65.6% | 72.7% | (7.1)pts | 81.7% | 79.0% | 2.7pts |
| Catastrophe loss ratio | 7.5% | 0.2% | 7.3pts | 10.4% | 0.8% | 9.6pts |
| Underlying combined ratio | 64.2% | 72.5% | (8.3)pts | 75.1% | 78.8% | (3.7)pts |
| Net income | $17,584 | $10,872 | 61.7% | $27,246 | $26,007 | 4.8% |
| Net income per share - diluted | $1.19 | $0.74 | 60.8% | $1.86 | $1.82 | 2.2% |
| Operating net income per share - diluted | $1.22 | $0.73 | 67.1% | $1.93 | $1.68 | 14.9% |
| Return on equity - annualized | 52.9% | 42.9% | 10.0pts | 28.0% | 39.8% | (11.8)pts |
| Refer to section entitled "Definitions and Non-GAAP Measures" included in this press release for definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP measures. |
Management Commentary
Meryl Golden, President and Chief Executive Officer of Kingstone, stated, "I am very pleased to again report the most profitable quarter in Kingstone history. Net income increased 62% to $17.6 million, or $1.19 per diluted share, and our GAAP net combined ratio improved 7.1 points to 65.6%, resulting in an annualized return on equity of 52.9%. Diluted book value per share rose 26% year-over-year to $9.21 despite $9.7 million of after-tax unrealized bond losses in the quarter.
Net premiums earned rose 30% on premium growth and our reduced quota share and direct premiums written grew 14.5%, driven by higher average renewal premiums, improved retention and new business growth. Policies in force are now up 11% year-over-year. Our 34.9% net loss ratio included 6.1 points of favorable prior-year reserve development and 7.5 points of catastrophe losses, compared with 0.2 points of catastrophe losses a year ago. Excluding both, our underlying loss ratio improved 10.6 points to 33.5% on lower claim frequency and severity, supported by the growing mix of business on the Select platform and faster claims cycle times that give us earlier visibility into ultimate claim costs.
We are updating our 2026 direct premiums written growth outlook to approximately 16%, improving our net combined ratio outlook to 79% to 83%, and raising the midpoint of our diluted earnings per share guidance to $2.80. We will continue to execute with discipline, grow where the returns justify it and allocate capital prudently to deliver long-term value to our shareholders."
Fiscal Year 2026 Outlook
(see “Disclaimer and Forward-Looking Statements” below)
The guidance below reflects management’s expectations based on information available as of November 5, 2026 and is subject to the risks and uncertainties described in “Disclaimer and Forward-Looking Statements” below.
| Guidance Metrics | 2026 Previous Estimate | 2026 Updated Estimate |
| Direct premiums written growth | 16% to 20% | ~16% |
| Net combined ratio | 81% to 86% | 79% to 83% |
| Underlying combined ratio (excluding catastrophe losses and prior-year reserve development) | 74% to 76% | 74% to 76% |
| Prior-year reserve development | - % | (3)% to (2)% |
| Catastrophe loss ratio | 7% to 10% | 8% to 9% |
| Net income per share - diluted | $2.20 to $2.90 | $2.70 to $2.90 |
| Return on equity | 24% to 30% | 29% to 30% |
¹Refer to “Definitions and Non-GAAP Measures” for definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP measures.
²The underlying combined ratio is a non-GAAP measure. It is computed as the sum of the underlying loss ratio (which is a non-GAAP measure) and the net underwriting expense ratio. The underlying loss ratio excludes catastrophe losses and prior-year reserve development from the GAAP net loss ratio. The most directly comparable GAAP measure is the net combined ratio. Refer to the section entitled “Definitions and Non-GAAP Measures” included in this press release for definitions and reconciliations of non-GAAP financial measures. The 2026 estimate of GAAP net combined ratio reflects the estimated underlying combined ratio plus the estimated catastrophe loss ratio, net of favorable prior-year reserve development recognized through September 30, 2026, as shown in the table above. Actual catastrophe losses and any additional prior-year reserve development could materially impact the GAAP measure of net combined ratio.
³ The catastrophe loss ratio estimate for 2026 of 8% to 9% is above the Company’s six-year historical average of 7.1% (2019 - 2024) and gives effect to the elevated winter storm activity experienced in the first quarter of 2026. Catastrophe losses are reported net of reinsurance recoveries and include loss adjustment expenses. The Company defines catastrophe events consistent with PCS industry designations.
Guidance for the most comparable GAAP measure, net premiums earned, is not provided because net premiums earned is an output of multiple variables including direct written premium growth, quota share cession rates, and premium earning patterns, several of which are not within the Company’s direct control; therefore the Company is unable to predict such variables with reasonable certainty without unreasonable efforts.
Reflects favorable prior-year reserve development recognized through September 30, 2026, as a percentage of estimated full year net premiums earned. No additional development is assumed for the fourth quarter
Key Modeling Assumptions
The following reflects certain key modeling assumptions with respect to the full year 2026 guidance:
| Assumption | 2026E |
| Assumed effective tax rate | 21% |
| Weighted average diluted shares outstanding | 14.8 million |
Consolidated Financial Results
| Consolidated Financial Results | Quarters Ended | Nine Months Ended |
| ($ in thousands, except policy and per share data) | September 30, | September 30, |
| 2026 | 2025 | Change | 2026 | 2025 | Change |
| Net premiums earned | $62,412 | $47,925 | 30.2% | $178,748 | $137,663 | 29.8% |
| Direct premiums written | $86,795 | $75,810 | 14.5% | $228,892 | $195,047 | 17.4% |
| Policies in force, at the end of the period | 86,579 | 78,026 | 11.0% | 86,579 | 78,026 | 11.0% |
| Net investment income | $3,756 | $2,499 | 50.3% | $10,522 | $6,848 | 53.7% |
| Net (losses) gains on investments | $(550) | $182 | NM | $(1,325) | $591 | (324.2)% |
| Gain on sale of real estate | $ - | $ - | - % | $ - | $1,966 | (100.0)% |
| Net loss ratio | 34.9% | 44.3% | (9.4)pts | 51.1% | 48.2% | 2.9pts |
| Net underwriting expense ratio | 30.7% | 28.4% | 2.3pts | 30.6% | 30.8% | (0.2)pts |
| Net combined ratio | 65.6% | 72.7% | (7.1)pts | 81.7% | 79.0% | 2.7pts |
| Net loss ratio | 34.9% | 44.3% | (9.4)pts | 51.1% | 48.2% | 2.9pts |
| Catastrophe loss ratio | 7.5% | 0.2% | 7.3pts | 10.4% | 0.8% | 9.6pts |
| Net loss ratio excluding the effect of catastrophes | 27.4% | 44.1% | (16.7)pts | 40.7% | 47.4% | (6.7)pts |
| Effect of prior-year favorable reserve development | (6.1)% | - % | (6.1)pts | (3.8)% | (0.6)% | (3.2)pts |
| Underlying loss ratio | 33.5% | 44.1% | (10.6)pts | 44.5% | 48.0% | (3.5)pts |
| Net income | $17,584 | $10,872 | 61.7% | $27,246 | $26,007 | 4.8% |
| Net income per share - basic | $1.21 | $0.77 | 57.1% | $1.88 | $1.88 | - % |
| Net income per share - diluted | $1.19 | $0.74 | 60.8% | $1.86 | $1.82 | 2.2% |
| Return on equity - annualized | 52.9% | 42.9% | 10.0pts | 28.0% | 39.8% | (11.8)pts |
| Adjusted EBITDA | $24,378 | $14,671 | 66.2% | $40,170 | $33,710 | 19.2% |
| Other comprehensive (loss) income, net of tax | $(9,690) | $2,186 | NM | $(12,130) | $5,431 | (323.3)% |
| Operating net income | $18,019 | $10,729 | 67.9% | $28,293 | $23,988 | 17.9% |
| Operating net income per share - basic | $1.24 | $0.76 | 63.2% | $1.96 | $1.73 | 13.3% |
| Operating net income per share - diluted | $1.22 | $0.73 | 67.1% | $1.93 | $1.68 | 14.9% |
| Operating return on equity | 13.6% | 10.6% | 3.0pts | 21.8% | 27.5% | (5.7)pts |
| Operating return on equity - annualized | 54.2% | 42.4% | 11.8pts | 29.1% | 36.7% | (7.6)pts |
| Book value per share, at the end of the period - diluted | $9.21 | $7.28 | 26.5% |
| Book value per share, at the end of the period - diluted excluding AOCI | $10.43 | $7.74 | 34.9% |
NM = Not meaningful
Refer to section entitled "Definitions and Non-GAAP Measures" included in this press release for definitions and reconciliations of non-GAAP financial measures to the most comparable GAAP measures.
Conference Call Details
Friday, November 6, 2026, at 8:30 a.m. Eastern Time
To participate please dial:
U.S. toll free 1-877-407-2991
International 1-201-389-0925
Participants are asked to dial-in approximately 10 minutes before the conference call is scheduled to begin. The conference call will also be available via live webcast on the Company’s website under the News & Events/Presentations section at www.kingstonecompanies.com. A replay will be available for 30 days.
About Kingstone Companies, Inc.
Kingstone is a regional property and casualty insurance holding company whose principal operating subsidiaries write business through retail and wholesale agents and brokers. Kingstone delivers tailored homeowners insurance solutions through its sophisticated product suite, Select, supported by a scalable and efficient operating platform that enables the Company to pursue significant market opportunities and strategic expansion. Kingstone was the 11th largest writer of homeowners insurance in New York in 2025 and is diversifying its geographic footprint by writing in Connecticut on an admitted basis and California on a non-admitted basis.
Disclaimer and Forward-Looking Statements
The guidance provided above is based on information available as of November 5, 2026 and management's review of the anticipated financial results for 2026. Such guidance remains subject to change based on management's ongoing review of the Company's 2026 results and is a forward-looking statement (see below). Kingstone assumes no obligation to update this guidance. The actual results may be materially different and are affected by the risk factors and uncertainties identified in this press release and in Kingstone's annual and quarterly filings with the Securities and Exchange Commission.
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. These statements involve risks and uncertainties that could cause actual results to differ materially from those included in forward-looking statements due to a variety of factors. For more details on factors that could affect expectations, see Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025.
The risks and uncertainties include, without limitation, the following:
- the risk of significant losses from catastrophes and severe weather events;
- risks related to the lack of a financial strength rating from A.M. Best;
- risks related to limitations on the ability of our insurance subsidiary to pay dividends to us;
- adverse capital, credit and financial market conditions;
- risks related to volatility in net investment income;
- the unavailability of reinsurance at current levels and prices;
- the exposure to greater net insurance losses in the event of reduced reliance on reinsurance;
- the credit risk of our reinsurers;
- the inability to maintain the requisite amount of risk-based capital needed to grow our business;
- the effects of climate change on the frequency or severity of weather events and wildfires;
- risks related to the limited market area of our business;
- risks related to a concentration of business in a limited number of producers;
- legislative and regulatory changes, including changes in insurance laws and regulations and their application by our regulators;
- the effects of competition in our market areas;
- our reliance on certain key personnel;
- risks related to security breaches or other attacks involving our computer systems or those of our vendors;
- our reliance on information technology and information systems; and
- the uncertainty relating to our geographic diversification strategy in entering the California and Connecticut markets and other markets.
Kingstone undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Definitions and Non-GAAP Measures
Direct premiums written is a non-GAAP measure, which represents the total premiums charged on policies issued by the Company during the respective fiscal period.
Adjusted EBITDA is a non-GAAP measure, which is net income (loss) exclusive of interest expense, income tax expense (benefit), depreciation and amortization, loss on extinguishment of debt, net gains (losses) on investments, gain on sale of real estate, and stock-based compensation. Net income (loss) is the GAAP measure most closely comparable to adjusted EBITDA.
Management uses adjusted EBITDA along with other measures to gauge the Company’s performance and evaluate results, which can be skewed when including interest expense, income tax expense (benefit), depreciation and amortization, loss on extinguishment of debt, net gains (losses) on investments, gain on sale of real estate, and stock-based compensation, and may vary significantly between periods. Adjusted EBITDA is provided as supplemental information, not as a substitute for net income, and does not reflect the Company’s overall profitability.
Operating net income (loss) and basic operating net income (loss) per share are non-GAAP measures, which are net income (loss) and basic net income (loss) per share exclusive of net gains (losses) on investments and gain on sale of real estate, net of tax. Net income (loss) and basic net income (loss) per share are the GAAP measures most closely comparable to operating net income (loss) and basic operating net income (loss) per share.
Management uses operating net income (loss) and basic operating net income (loss) per share along with other measures to gauge the Company’s performance and evaluate results, which can be skewed when including net gains (losses) on investments and gain on sale of real estate and may vary significantly between periods. Operating net income (loss) and basic operating net income (loss) per share are provided as supplemental information, not as a substitute for net income (loss) and basic net income (loss) per share, and do not reflect the Company’s overall profitability.
Operating net income (loss) and diluted operating net income (loss) per share are non-GAAP measures, which are net income (loss) and diluted net income (loss) per share exclusive of net gains (losses) on investments and gain on sale of real estate, net of tax. Net income (loss) and diluted net income (loss) per share are the GAAP measures most closely comparable to operating net income (loss) and diluted operating net income (loss) per share.
Management uses operating net income (loss) and diluted operating net income (loss) per share along with other measures to gauge the Company’s performance and evaluate results, which can be skewed when including net gains (losses) on investments and gain on sale of real estate and may vary significantly between periods. Operating net income (loss) and diluted operating net income (loss) per share are provided as supplemental information, not as a substitute for net income (loss) and diluted net income (loss) per share, and do not reflect the Company’s overall profitability.
Operating return on equity is a non-GAAP measure, which is operating net income (loss) divided by average equity, which is the average of equity at the beginning of the period presented and ending equity at the end of the period presented. Return on equity is the GAAP measure most closely comparable to operating return on equity.
Management uses operating return on equity, along with other measures, to gauge the Company’s performance and evaluate results, which can be skewed when including net gains (losses) on investments and gain on sale of real estate, which may vary significantly between periods. Operating return on equity is provided as supplemental information, is not a substitute for return on equity and does not reflect the Company’s overall return on average common equity.
Underlying loss ratio is a non-GAAP ratio, which is computed as the GAAP net loss ratio excluding the effect of prior year loss reserve development and catastrophe losses.
Management believes that this ratio is useful to investors, and it is used by management to reveal the trends in the Company’s business that may be obscured by prior year loss reserve development and catastrophe losses. Catastrophe losses cause the Company’s loss ratios to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on the net loss ratio. Management believes that this measure is useful for investors to evaluate this component separately when reviewing the Company’s underwriting performance. The most directly comparable GAAP measure is the net loss ratio. The underlying loss ratio should not be considered a substitute for the net loss ratio and does not reflect the Company’s net loss ratio.
Net loss ratio excluding the effect of catastrophes is a non-GAAP ratio, which is computed as the difference between GAAP net loss ratio and the effect of catastrophes on the net loss ratio.
Management believes that this ratio is useful to investors, and it is used by management to reveal the trends in the Company’s business that may be obscured by catastrophe losses. Catastrophe losses cause the Company’s net loss ratios to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on the net loss ratio. Management believes that this measure is useful for investors to evaluate this component separately when reviewing the Company’s underwriting performance. The most directly comparable GAAP measure is the net loss ratio. The net loss ratio excluding the effect of catastrophes should not be considered a substitute for the net loss ratio and does not reflect the Company’s net loss ratio.
Underlying combined ratio is a non-GAAP measure, which is computed as the sum of the underlying loss ratio and the net underwriting expense ratio.
Management believes that this ratio is useful to investors, and it is used by management to reveal the trends in the Company’s business that may be obscured by prior year loss reserve development and catastrophe losses. Catastrophe losses cause the Company’s loss ratios to vary significantly between periods as a result of their incidence of occurrence and magnitude and can have a significant impact on the net combined ratio. Management believes that this measure is useful for investors to evaluate this component separately when reviewing the Company’s underwriting performance. The most directly comparable GAAP measure is the net combined ratio. The underlying combined ratio should not be considered a substitute for the net combined ratio and does not reflect the Company’s net combined ratio.
Book value per share, at the end of the period - diluted excluding AOCI is a non-GAAP measure, which is book value per share, at the end of the period - diluted less changes in accumulated other comprehensive income (AOCI). This measure is used by management to measure the diluted book value per share excluding the unrealized gains (losses) from the Company's investment portfolio since the Company has the ability and intent to hold available-for-sale fixed income securities to maturity, therefore not realizing the unrealized gain or loss. Management believes removing the quarter to quarter volatility in market movements impacting the fair value of the Company's available-for-sale fixed income securities is useful for investors to measure the Company's diluted book value per share. The most directly comparable GAAP measure is book value per share, at the end of the period - diluted. Book value per share, at the end of the period - diluted excluding AOCI should not be considered a substitute for book value per share, at the end of the period - diluted and does not reflect the Company’s book value per share, at the end of the period - diluted.
The table below reconciles GAAP net premiums earned to direct premiums written for the periods presented:
| For the Three Months Ended | For the Nine Months Ended |
|---|
| September 30, | September 30, |
|---|
| (000’s except percentages) | 2026 | 2025 | Change | 2026 | 2025 | Change |
| Direct Premiums Written Reconciliation: | | | | | | |
| GAAP net premiums earned | $62,412 | $47,925 | 30.2% | $178,748 | $137,663 | 29.8% |
| Change in unearned premiums | (18,307) | (16,276) | 12.5 | 10,739 | 7,206 | 49.0 |
| Net premiums written | 44,104 | 31,649 | 39.4 | 189,487 | 144,869 | 30.8 |
| Ceded written premiums | (42,691) | (44,161) | (3.3) | (39,406) | (50,178) | (21.5) |
| Direct premiums written | $86,795 | $75,810 | 14.5% | $228,892 | $195,047 | 17.4% |
| (Components may not sum due to rounding) |
The following table reconciles GAAP net income to adjusted EBITDA for the periods indicated:
| For the Three Months Ended | For the Nine Months Ended |
|---|
| September 30, | September 30, |
|---|
| (000’s except percentages) | 2026 | 2025 | Change | 2026 | 2025 | Change |
| Adjusted EBITDA Reconciliation: | | | | | | |
| Net income | $17,584 | $10,872 | 61.7% | $27,246 | $26,007 | 4.8% |
| Interest expense | 54 | 73 | (26.0) | 183 | 377 | (51.5) |
| Income tax expense | 4,720 | 2,834 | 66.5 | 7,169 | 6,584 | 8.9 |
| Depreciation and amortization | 806 | 645 | 25.0 | 2,283 | 1,882 | 21.3 |
| EBITDA | 23,165 | 14,423 | 60.6 | 36,882 | 34,850 | 5.8 |
| Loss on extinguishment of debt | - | - | - | - | 175 | (100.0) |
| Net loss (gain) on investments | 550 | (182) | NM | 1,325 | (591) | (324.2) |
| Gain on sale of real estate | - | - | - | - | (1,966) | (100.0) |
| Stock-based compensation | 663 | 430 | 54.2 | 1,963 | 1,241 | 58.2 |
| Adjusted EBITDA | $24,378 | $14,671 | 66.2% | $40,170 | $33,710 | 19.2% |
| NM = Not meaningful | | | | | | |
| (Components may not sum due to rounding) |
The following table reconciles GAAP net income to operating net income and GAAP net income per share - basic to operating net income per share - basic for the periods indicated:
| For the Three Months Ended | For the Nine Months Ended |
|---|
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 |
|---|
| (000’s except per common share and outstanding share amounts) | Amount | Basic income per common share | Amount | Basic income per common share | Amount | Basic income per common share | Amount | Basic income per common share |
| Net income | $17,584 | $1.21 | $10,872 | $0.77 | $27,246 | $1.88 | $26,007 | $1.88 |
| Net loss (gain) on investments | 550 | | (182) | | 1,325 | | (591) | |
| Gain on sale of real estate | - | | - | | - | | (1,966) | |
| Net loss (gain) on investments and (gain) on sale of real estate | 550 | | (182) | | 1,325 | | (2,557) | |
| Less tax benefit (expense) on net loss (gain) | 115 | | (38) | | 278 | | (537) | |
| Net loss (gain) on investments and (gain) on sale of real estate, net of taxes | 434 | $0.03 | (144) | $(0.01) | 1,047 | $0.07 | (2,020) | $(0.15) |
| Operating net income | $18,019 | $1.24 | $10,729 | $0.76 | $28,293 | $1.96 | $23,988 | $1.73 |
| Weighted average basic shares outstanding | 14,478,275 | | 14,142,374 | | 14,470,866 | | 13,849,283 | |
| (Components may not sum due to rounding) |
The following table reconciles GAAP net income to operating net income and GAAP net income per share - diluted to operating net income per share - diluted for the periods indicated:
| For the Three Months Ended | For the Nine Months Ended |
|---|
| September 30, 2026 | September 30, 2025 | September 30, 2026 | September 30, 2025 |
|---|
| (000’s except per common share and outstanding share amounts) | Amount | Diluted income per common share | Amount | Diluted income per common share | Amount | Diluted income per common share | Amount | Diluted income per common share |
| Net income | $17,584 | $1.19 | $10,872 | $0.74 | $27,246 | $1.86 | $26,007 | $1.82 |
| Net loss (gain) on investments | 550 | | (182) | | 1,325 | | (591) | |
| Gain on sale of real estate | - | | - | | - | | (1,966) | |
| Net loss (gain) on investments and (gain) on sale of real estate | 550 | | (182) | | 1,325 | | (2,557) | |
| Less tax benefit (expense) on net loss (gain) | 115 | | (38) | | 278 | | (537) | |
| Net loss (gain) on investments and (gain) on sale of real estate, net of taxes | 434 | $0.03 | (144) | $(0.01) | 1,047 | $0.07 | (2,020) | $(0.15) |
| Operating net income | $18,019 | $1.22 | $10,729 | $0.73 | $28,293 | $1.93 | $23,988 | $1.68 |
| Weighted average diluted shares outstanding | 14,716,112 | | 14,601,241 | | 14,657,940 | | 14,303,326 | |
| (Components may not sum due to rounding) |
The following table reconciles GAAP net income to operating net income and GAAP return on equity to operating return on equity for the periods indicated:
| For the Three Months Ended | For the Nine Months Ended |
|---|
| September 30, | September 30, |
|---|
| (000’s except percentages) | 2026 | 2025 | Change | 2026 | 2025 | Change |
| Operating Net Income Reconciliation: | | | | | | |
| Net income | $17,584 | $10,872 | 61.7% | $27,246 | $26,007 | 4.8% |
| Net loss (gain) on investments | 550 | (182) | NM | 1,325 | (591) | (324.2)% |
| Gain on sale of real estate | - | - | - % | - | (1,966) | (100.0)% |
| Net loss (gain) on investments and (gain) on sale of real estate | 550 | (182) | NM | 1,325 | (2,557) | (151.8)% |
| Less tax benefit (expense) on net loss (gain) | 115 | (38) | NM | 278 | (537) | (151.8)% |
| Net loss (gain) on investments and (gain) on sale of real estate, net of taxes | 434 | (144) | NM | 1,047 | (2,020) | (151.8)% |
| Operating net income | $18,019 | $10,729 | 67.9% | $28,293 | $23,988 | 17.9% |
| Operating Return on Equity Reconciliation: | | | | | | |
| Net income | $17,584 | $10,872 | 61.7% | $27,246 | $26,007 | 4.8% |
| Average equity | $132,951 | $101,265 | 31.3% | $129,737 | $87,181 | 48.8% |
| Return on equity | 13.2% | 10.7% | 2.5pts | 21.0% | 29.8% | (8.8)pts |
| Return on equity - annualized | 52.9% | 42.9% | 10.0pts | 28.0% | 39.8% | (11.8)pts |
| Net loss (gain) on investments and (gain) on sale of real estate, net of taxes | $434 | $(144) | NM | $1,047 | $(2,020) | (151.8)% |
| Average equity | $132,951 | $101,265 | 31.3% | $129,737 | $87,181 | 48.8% |
| Effect of net loss (gain) on investments and (gain) on sale of real estate, net of taxes, on return on equity | 0.3% | (0.1)% | 0.4pts | 0.8% | (2.3)% | 3.1pts |
| Operating net income | $18,019 | $10,729 | 67.9% | $28,293 | $23,988 | 17.9% |
| Operating net income - annualized | $72,076 | $42,914 | 68.0% | $37,724 | $31,984 | 17.9% |
| Average equity | $132,951 | $101,265 | 31.3% | $129,737 | $87,181 | 48.8% |
| Operating return on equity | 13.6% | 10.6% | 3.0pts | 21.8% | 27.5% | (5.7)pts |
| Operating return on equity - annualized | 54.2% | 42.4% | 11.8pts | 29.1% | 36.7% | (7.6)pts |
| NM = Not meaningful | | | | | | |
| (Components may not sum due to rounding) |
The following table reconciles the GAAP net loss ratio to the underlying loss ratio, which excludes the effect of catastrophe losses and prior-year loss reserve development for the periods presented:
| For the Three Months Ended | For the Nine Months Ended |
|---|
| September 30, | September 30, |
|---|
| 2026 | 2025 | Percentage Point Change | 2026 | 2025 | Percentage Point Change |
|---|
| Underlying Loss Ratio Reconciliation: | | | | | | |
| GAAP net loss ratio | 34.9% | 44.3% | (9.4)pts | 51.1% | 48.2% | 2.9pts |
| Effect of catastrophes | 7.5% | 0.2% | 7.3pts | 10.4% | 0.8% | 9.6pts |
| Net loss ratio excluding the effect of catastrophes | 27.4% | 44.1% | (16.7)pts | 40.7% | 47.4% | (6.7)pts |
| Effect of prior-year favorable reserve development | (6.1)% | - % | (6.1)pts | (3.8)% | (0.6)% | (3.2)pts |
| Underlying Loss Ratio | 33.5% | 44.1% | (10.6)pts | 44.5% | 48.0% | (3.5)pts |
| (Components may not sum due to rounding) |
The following table reconciles the GAAP net combined ratio to the underlying combined ratio, which excludes the effect of catastrophe losses and prior-year loss reserve development for the periods presented:
| For the Three Months Ended | For the Nine Months Ended |
|---|
| September 30, | September 30, |
|---|
| 2026 | 2025 | Percentage Point Change | 2026 | 2025 | Percentage Point Change |
|---|
| Underlying Combined Ratio Reconciliation: | | | | | | |
| GAAP net combined ratio | 65.6% | 72.7% | (7.1)pts | 81.7% | 79.0% | 2.7pts |
| Effect of catastrophes | 7.5% | 0.2% | 7.3pts | 10.4% | 0.8% | 9.6pts |
| Effect of prior-year favorable reserve development | (6.1)% | - % | (6.1)pts | (3.8)% | (0.6)% | (3.2)pts |
| Underlying combined ratio | 64.2% | 72.5% | (8.3)pts | 75.1% | 78.8% | (3.7)pts |
| (Components may not sum due to rounding) |
The following table reconciles GAAP book value per share, at the end of the period - diluted to book value per share, at the end of the period - diluted excluding AOCI for the periods indicated:
| As of |
|---|
| September 30, 2026 | September 30, 2025 |
|---|
| (000’s except per common share and outstanding share amounts) | Amount | Book value per share - diluted | Amount | Book value per share - diluted |
| GAAP stockholders' equity | $136,742 | $9.21 | $107,653 | $7.28 |
| AOCI | (18,212) | $(1.23) | (6,745) | $(0.46) |
| Stockholders' equity excluding AOCI | $154,954 | $10.43 | $114,398 | $7.74 |
| Diluted shares outstanding | 14,849,471 | | 14,783,832 | |
| (Components may not sum due to rounding) |
| September 30, 2026 | December 31, 2025 |
|---|
| (unaudited) | |
|---|
| KINGSTONE COMPANIES, INC. AND SUBSIDIARIES |
| Condensed Consolidated Balance Sheets | | |
| Assets | | |
| Short-term investments, at fair value (cost of $1,486,371 at September 30, 2026 and $0 at December 31, 2025) | $1,482,405 | $ - |
| Fixed-maturity securities, held-to-maturity, at amortized cost (fair value of $4,789,397 at September 30, 2026 and $5,137,267 at December 31, 2025) | 6,038,334 | 6,042,348 |
| Fixed-maturity securities, available-for-sale, at fair value, net of allowance for credit loss of $7,295 at September 30, 2026 and $0 at December 31, 2025 (amortized cost of $339,039,442 at September 30, 2026 and $296,738,055 at December 31, 2025) | 315,980,512 | 289,037,190 |
| Equity securities, at fair value (cost of $13,598,454 at September 30, 2026 and $13,546,654 at December 31, 2025) | 9,186,878 | 10,056,595 |
| Other investments | 4,367,262 | 4,552,378 |
| Total investments | 337,055,391 | 309,688,511 |
| Cash and cash equivalents | 20,789,875 | 12,178,730 |
| Premiums receivable, net of allowance for credit losses of $97,017 at September 30, 2026, and $20,831 at December 31, 2025 | 20,252,585 | 21,012,408 |
| Reinsurance receivables, net | 54,854,557 | 58,996,945 |
| Prepaid reinsurance | 1,673,206 | 2,142,329 |
| Deferred policy acquisition costs | 26,219,124 | 27,867,207 |
| Intangible assets | 500,000 | 500,000 |
| Property and equipment, net | 8,237,039 | 7,897,675 |
| Deferred income taxes, net | 7,465,128 | 4,179,559 |
| Other assets | 11,684,465 | 8,961,787 |
| Total assets | $488,731,370 | $453,425,151 |
| Liabilities | | |
| Loss and loss adjustment expense reserves | $158,457,641 | $140,538,618 |
| Unearned premiums | 162,401,533 | 154,028,072 |
| Advance premiums | 8,412,395 | 4,003,453 |
| Reinsurance balances payable | 3,888,399 | 5,232,319 |
| Deferred ceding commission revenue | 174,251 | 8,362,529 |
| Accounts payable, accrued expenses and other liabilities | 11,390,227 | 11,253,649 |
| Income taxes payable | 3,789,983 | 2,835,135 |
| Debt, net (current $1,354,999 and long-term $2,119,590 at September 30, 2026, current $1,296,900 and long-term $3,143,227 at December 31, 2025) | 3,474,589 | 4,440,127 |
| Total liabilities | 351,989,018 | 330,693,902 |
| Commitments and Contingencies | | |
| Stockholders' Equity | | |
| Preferred stock, $0.01 par value; authorized 2,500,000 shares | - | - |
| Common stock, $0.01 par value; authorized 20,000,000 shares; issued 16,025,218 shares at September 30, 2026 and 15,921,651 shares at December 31, 2025; outstanding 14,481,647 shares at September 30, 2026 and 14,397,526 shares at December 31, 2025 | 160,252 | 159,216 |
| Capital in excess of par | 101,125,525 | 99,624,713 |
| Accumulated other comprehensive loss | (18,211,772) | (6,081,530) |
| Retained earnings | 59,528,187 | 34,596,857 |
| 142,602,192 | 128,299,256 |
| Treasury stock, at cost, 1,543,571 shares at September 30, 2026 and 1,524,125 shares at December 31, 2025 | (5,859,840) | (5,568,007) |
| Total stockholders' equity | 136,742,352 | 122,731,249 |
| Total liabilities and stockholders' equity | $488,731,370 | $453,425,151 |
| For the Three Months Ended | For the Nine Months Ended |
|---|
| September 30, | September 30, |
|---|
| 2026 | 2025 | 2026 | 2025 |
|---|
| KINGSTONE COMPANIES, INC. AND SUBSIDIARIES |
| Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) |
| Revenues | | | | |
| Net premiums earned | | $62,411,604 | | $47,925,053 | | $178,747,895 | | $137,663,376 |
| Ceding commission revenue | | 1,740,426 | | 4,900,401 | | 4,677,268 | | 10,940,648 |
| Net investment income | | 3,755,811 | | 2,499,071 | | 10,522,121 | | 6,847,934 |
| Net (losses) gains on investments | | (549,962) | | 182,122 | | (1,324,964) | | 590,594 |
| Gain on sale of real estate | | - | | - | | - | | 1,965,989 |
| Other income | | 185,905 | | 145,843 | | 550,746 | | 437,503 |
| Total revenues | | 67,543,784 | | 55,652,490 | | 193,173,066 | | 158,446,044 |
| Expenses | | | | |
| Loss and loss adjustment expenses | | 21,801,743 | | 21,232,324 | | 91,306,624 | | 66,334,564 |
| Commission expense | | 12,192,870 | | 10,308,092 | | 33,961,420 | | 30,250,601 |
| Other underwriting expenses | | 8,898,238 | | 8,358,432 | | 25,914,666 | | 23,491,221 |
| Other operating expenses | | 1,485,762 | | 1,330,258 | | 5,108,739 | | 3,519,475 |
| Depreciation and amortization | | 806,401 | | 644,653 | | 2,283,381 | | 1,881,880 |
| Interest expense | | 54,073 | | 72,609 | | 182,736 | | 377,137 |
| Total expenses | | 45,239,087 | | 41,946,368 | | 158,757,566 | | 125,854,878 |
| Income from operations before taxes | | 22,304,697 | | 13,706,122 | | 34,415,500 | | 32,591,166 |
| Income tax expense | | 4,720,243 | | 2,833,647 | | 7,169,125 | | 6,583,699 |
| Net income | | 17,584,454 | | 10,872,475 | | 27,246,375 | | 26,007,467 |
| Other comprehensive (loss) income, net of tax | | | | |
| Gross (increase) decrease in net unrealized losses | | | | |
| on available-for-sale-securities | | (12,271,271) | | 2,760,803 | | (15,565,772) | | 6,862,488 |
| Reclassification adjustment for net losses | | | | |
| included in net income | | 5,785 | | 6,322 | | 211,036 | | 12,126 |
| Net (increase) decrease in net unrealized losses | | (12,265,486) | | 2,767,125 | | (15,354,736) | | 6,874,614 |
| Income tax benefit (expense) related to items | | | | |
| of other comprehensive (loss) income | | 2,575,750 | | (581,096) | | 3,224,494 | | (1,443,668) |
| Other comprehensive (loss) income, net of tax | | (9,689,736) | | 2,186,029 | | (12,130,242) | | 5,430,946 |
| Comprehensive income | | $7,894,718 | | $13,058,504 | | $15,116,133 | | $31,438,413 |
| Earnings per common share: | | | | |
| Basic | | $1.21 | | $0.77 | | $1.88 | | $1.88 |
| Diluted | | $1.19 | | $0.74 | | $1.86 | | $1.82 |
| Weighted average common shares outstanding | | | | |
| Basic | | 14,478,275 | | 14,142,374 | | 14,470,866 | | 13,849,283 |
| Diluted | | 14,716,112 | | 14,601,241 | | 14,657,940 | | 14,303,326 |
| Dividends declared and paid per common share | $0.06 | | $0.05 | | $0.16 | | $0.05 | |
Contacts
Elevate IR
KINS@elevate-ir.com
720-330-2829